GIFT Nifty down 20 points; here's the trading setup for today's session

Domestic equities came under pressure on Monday amid global turmoil and witnessed broad base selling. Analysts said the fear of regional conflict in the Middle East and worries over more rate hikes by the US Fed for extended periods are the major cause of concern in the market.

"We expect the market to remain volatile amid rise in global uncertainties while the stock specific action is likely to continue in the market amid a busy results season. Investors are advised to shift focus towards large-cap where valuations are comparatively comfortable," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.

Here's breaking down the pre-market actions:

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a negative start
GIFT Nifty on the NSE IX traded lower by 21 points, or 0.11 per cent, at 19303, signaling that Dalal Street was headed for negative start on Wednesday.

• Tech View: The short term trend of Nifty continues to be negative. Having moved below the support of 19330, one may expect Nifty to slide down to 18825 levels-200 day EMA in the near term. Any attempt of upside bounce could encounter resistance around 19400 levels, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 0.81% to settle at 10.90 levels.

US stocks gain
Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally.

• Dow up 0.62%,
• S&P rises 0.73%,
• Nasdaq gains 0.93%

Asian shares up
Stocks in Asia advanced after President Xi Jinping stepped up support for China’s economy, buoying optimism.

• S&P 500 futures fell 0.1% as of 9:35 a.m. Tokyo time. The S&P 500 rose 0.7%
• Nasdaq 100 futures fell 0.3%. The Nasdaq 100 rose 1%
• Japan’s Topix index rose 0.9%
• Australia’s S&P/ASX 200 Index fell 0.2%
• Hong Kong’s Hang Seng futures rose 3.1%

Dollar bounces
The dollar was on the front foot on Wednesday, drawing support from yet another resilient U.S. economic data reading, while the euro struggled to make headway on the back of a darkening growth outlook in the bloc.

Oil nearly flat
Oil prices were nearly flat on Wednesday as signs of tighter U.S. supplies countered economic data that dampened the outlook for energy demand. Brent crude futures edged higher 2 cents to $88.09 a barrel as of 0003 GMT, while U.S. West Texas Intermediate crude futures dipped 5 cents to $83.69 a barrel.



Stocks in F&O ban today

1) RBL Bank
Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors were net buyers at Rs 252 crore on Monday. DIIs bought shares worth Rs 1,112 crore.

Rupee
The rupee dropped 4 paise to 83.16 against the US dollar on Monday due to sharp losses in local stocks and US bond yields surging to 5%.

F&O data
The net short position of FIIs increased from Rs 89,518 crore on Friday to Rs 90,512 crore on Monday.

Q2 results
Axis Bank, Tech Mahindra, Jubilant Food and a slew of other companies will announce their second quarter results today.